half yearly report 2014

8/11/2019 Half Yearly Report 2014

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HALFYEARLY


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Dated: Dhaka July 17, 2014

Dear Shareholders,

Pursuant to the requirements of the Securities and Exchange Rules, 1987 and the Listing Regulations

of the Stock Exchanges, we are pleased to present the following Half-Yearly Financial Statements of

Lafarge Surma Cement Limited:

Un-audited Half-Yearly Consolidated Financial Statements containing Financial Position as on

June 30, 2014, Consolidated Income Statement, Consolidated Statement of Comprehensive

Income, Consolidated Statement of Changes in Equity and Consolidated Statement of Cash Flow

for the half-year ended on the same date; and

Un-audited Half-Yearly Financial Statements containing Financial Position as on June 30, 2014,

Income Statement, Statement of Comprehensive Income, Statement of Changes in Equity and

Statement of Cash Flow for the half-year ended on the same date.

Yours sincerely,

Tarek Samir Ahmed Elba

Chief Executive Officer


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30 Jun 2014 31 Dec 2013

NOTES Taka'000 Taka'000ASSETS

NON-CURRENT ASSETS

Property, plant and equipment 5 12,660,279 12,763,354

Intangible assets 6 992,866 987,293

Other receivables 9 58,978 86,457

13,712,123 13,837,104

CURRENT ASSETS

Inventories 7 1,612,918 1,593,449

Trade receivables 8 779,715 799,536

Other receivables 9 2,218,083 1,592,835

Cash and cash equivalents 10 2,067,086 1,204,399 6,677,802 5,190,219

TOTAL ASSETS 20,389,925 19,027,323

EQUITY & LIABILITIES

Share capital 11,613,735 11,613,735

Retained earnings (122,543) (944,130)

Other components of equity (15,251) (52,603)

Foreign currency translation 411,671 427,423

SHAREHOLDERS' EQUITY- PARENT COMPANY 11,887,612 11,044,425

Non-controlling interests 133 118EQUITY 11,887,745 11,044,543

NON-CURRENT LIABILITIES

Long-term debt 11 320,583 497,027

Deferred tax liabilities 12 1,570,113 1,224,510

Employee benefits 28,830 137,817

Provision 13 25,446 23,146

1,944,972 1,882,500

CURRENT LIABILITIES

Trade payables 14 2,224,920 2,267,632

Other payables 15 932,707 440,064Derivative instruments 23,241 48,355

Current portion of long term debt 11 413,738 409,100

Short-term debt 16 2,795,383 2,761,847

Current tax liabilities 17 167,219 173,282

6,557,208 6,100,280

TOTAL EQUITY AND LIABILITIES 20,389,925 19,027,323

The accompanying Notes 1 to 26 form an integral part of these interim financial statements.

LAFARGE SURMA CEMENT LIMITEDConsolidated Statement of Financial Position (Un-audited)

at 30 June 2014

Finance Director Chief Executive Officer


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NOTES Jan-Jun 2014 Jan-Jun 2013 Apr-Jun 2014 Apr-Jun 2013

Taka '000 Taka '000 Taka '000 Taka '000REVENUE 18 5,626,724 5,691,975 2,954,962 2,746,008

Cost of sales 19 (3,462,781) (3,249,411) (1,803,524) (1,656,450)

GROSS PROFIT 2,163,943 2,442,564 1,151,438 1,089,558

General and

administrative expenses 20 (366,282) (374,055) (186,275) (183,143)

Sales and

marketing expenses 21 (82,940) (80,941) (42,835) (39,732)

Other operating income 74,290 179,953 70,930 171,165

OPERATING INCOME 1,789,011 2,167,521 993,258 1,037,848

Finance cost 22 (104,409) (439,818) (54,242) (377,211)

Finance income 22 57,212 51 1,142 51

INCOME BEFORE TAX 1,741,814 1,727,754 940,158 660,688

Income tax 23 (339,540) (665,733) (165,801) (299,019)

INCOME FOR

THE PERIOD 1,402,274 1,062,021 774,357 361,669

Basic earnings

per share (Taka) 24 1.21 0.91 0.67 0.31


LAFARGE SURMA CEMENT LIMITEDConsolidated Income Statement (Un-audited)

for the period ended 30 June 2014



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Jan-Jun 2014 Jan-Jun 2013 Apr-Jun 2014 Apr-Jun 2013

Taka'000 Taka'000 Taka '000 Taka '000INCOME FOR THE PERIOD 1,402,27 1,062,021 774,357 361,669

Items that may be reclassifiedsubsequently to profit or loss

Cash flow hedge instruments 37,352 (81,347) (4,306) (90,950)

Exchange differences on translating

foreign operation (15,752) 236,493 5,135 220,517

Non controlling interests- currency

translation adjustment 15 (65) (1) (57)

OTHER COMPREHENSIVE

INCOME FOR THE PERIOD 21,615 155,081 828 129,510

TOTAL COMPREHENSIVE

INCOME FOR THE PERIOD 1,423,889 1,217,102 775,185 491,179

Attributable to:

Owners of the parent Company 1,423,874 1,217,167 775,186 491,236

Non-controlling interests 15 (65) (1) (57)

1,423,889 1,217,102 775,185 491,179

( All figures are in Tk. '000)

Other Foreign Equity for Non

Share Retained components currency parent controlling Total

capital earnings of equity translation company interests equity

Balance at

1 January 2013 11,613,735 (3,490,257) (11,894) 268,932 8,380,516 231 8,380,747

Total comprehensiveincome/(loss) for the period - 1,062,021 (81,347) 236,493 1,217,167 (65) 1,217,102

Balance at

30 June 2013 11,613,735 (2,428,236) (93,241) 505,425 9,597,683 166 9,597,849

Balance at

1 January 2014 11,613,735 (944,130) (52,603) 427,423 11,044,425 118 11,044,543

Total comprehensive

income/(loss)

for the period - 1,402,274 37,352 (15,752) 1,423,874 15 1,423,889

Interim dividend - (580,687) - - (580,687) - (580,687)

Balance at

30 June 2014 11,613,735 (122,543) (15,251) 411,671 11,887,612 13311,887,745

LAFARGE SURMA CEMENT LIMITEDConsolidated Statement of Comprehensibe Income (Un-audited)for the period ended 30 June 2014

LAFARGE SURMA CEMENT LIMITEDConsolidated Statement of Changes in Equity (Un-audited)





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Jan-Jun 2014 Jan-Jun 2013

Taka'000 Taka'000Cash Flows From Operating Activities

Cash receipts from customers 5,569,730 5,734,755

Cash paid to suppliers and employees (4,160,718) (3,440,103)

Cash generated in operations 1,409,012 2,294,652

Income tax paid (254,748) (130,880)

Other receipts 75,996 172,016

Net cash generated by operating activities 1,230,260 2,335,788

Cash Flows From Investing Activities

Payments for property, plant and equipment (138,453) (141,473)Payments for intangible assets (2,134) (1)

Proceeds from sale of property, plant and equipment 477 4,533

Interest income on bank deposits 17,235 -

Net cash used in investing activities (122,875) (136,941)

Cash Flows From Financing Activities

Repayment of long term debt (183,069) (1,610,441)

Increase (decrease) in short term debt 27,392 (125,002)

Payment of interest (90,277) (211,421)

Net cash used in financing activities (245,954) (1,946,864)

Net effect of foreign currency

translationon cash and cash equivalents 1,256 (775)

Net increase/(decrease) in cash and cash equivalents 862,687 251,208

Cash and Cash Equivalents at Beginning of the Period 1,204,399 154,160

Cash and Cash Equivalents at End of the Period 2,067,086 405,368

LAFARGE SURMA CEMENT LIMITEDConsolidated Statement of Cash Flows (Un-audited)




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1 Background and Introduction

Formation and legal status

Lafarge Surma Cement Limited (LSCL)-(hereinafter referred to as "Lafarge Surma or the Company") wasincorporated on 11 November 1997 as a private limited company in Bangladesh under the Companies Act 1994having its registered office in Dhaka. The Company has subsequently been converted into a public limitedcompany on 20 January 2003 and went for Initial Public Offering of shares in November 2003 which was fullysubscribed and issued. The shares have since been listed and are being traded in Dhaka and Chittagong StockExchanges. Presently the Company has two subsidiaries in India. The main objectives of the subsidiaries are tosupport the holding company. A brief description of each of the subsidiary is given below:

Lum Mawshun Minerals Private Limited (LMMPL)-incorporated under the Indian Companies Act 1956 on 17November 1994 as a private limited company with its registered office at Shillong in the State of Meghalaya, India.

Lafarge Umiam Mining Private Limited (LUMPL)-

incorporated under the Indian Companies Act 1956 on 22March 1999 as a private limited company with its registered office at Shillong in the State of Meghalaya, India.

2 Nature of Business

The Company has established the countrys only modern, integrated and state-of-the art cementmanufacturing plant at Chhatak under Sunamganj district. The company extracts and processes the basicraw materials limestone from its own quarry in Meghalaya. A 17 kilometre cross-border belt conveyor linksthe quarry with the cement plant for transportation of raw materials.

The company is engaged in manufacturing and marketing of cement and clinker in the local market.

3 Basis of Preparation

The consolidated interim financial statements have been prepared in accordance with Bangladesh

Accounting Standard 34 Interim Financial Reporting.

4 Significant Accounting Policies

The financial statements have been prepared under the historical cost convention , except for the following:i) derivative financial instruments measured at fair value;

ii) financial instruments at fair value through profit and loss measured at fair value.

The same accounting policies, presentation and methods of computation have been followed in these interimfinancial statements as were applied in the preparation of the Company's financial statements for the yearended 31 December 2013.

30 Jun 2014 31 Dec 2013

Taka'000 Taka'0005 Property, Plant and Equipment

COST At January 1 16,689,914 16,808,096 Additions 144,403 196,293 Disposals (14,415) (38,666) Translation adjustment 50,629 (275,809) At June 30/December 31 16,870,531 16,689,914

DEPRECIATIONAt January 3,926,560 3,438,864

Disposals (12,236) (25,890)

Change for the period 284,096 571,374 Translation adjustment 11,832 (57,788) At June 30/December 31 4,210,252 3,926,560

CARRYING AMOUNT 12,660,279 12,763,354

LAFARGE SURMA CEMENT LIMITEDNotes to the Condensed Consolidated Financial Statements (Un-audited)



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30 Jun 2014 31 Dec 2013

Taka'000 Taka'000

6 Intangible Assets

COSTAt January 1 1,172,008 1,339,077

Additions 2,134 8,328 Disposals (4) (32)

Translation adjustment 31,339 (175,365)

At June 30/December 31 1,205,477 1,172,008

AMORTIZATIONAt January 184,715 152,306Disposals (4) -

Change for the period 24,009 48,748 Translation adjustment 3,891 (16,339)

At June 30/December 31 212,611 184,715

CARRYING AMOUNT 992,866 987,293

7 Inventories

Raw materials 527,189 467,912

Spare parts 850,945 860,095

Packing materials 15,769 10,782

Other materials 65,081 118,255

Finished goods and work in process 153,934 136,405

1,612,918 1,593,449

8 Trade Receivables

Trade receivables 789,392 808,346

Valuation allowance (9,677) (8,810)

779,715 799,5369 Other Receivables

Contractors, consultants, suppliers and others 386,901 240,426 Employees 73,191 42,272 Prepaid expenses 252,613 150,311

VAT current account 180,208 117,171Income tax-deducted at source 1,325,873 1,067,068

Other receivables 44,693 59,383

Accrued interest 13,582 2,661

2,277,061 1,679,292

Current portion 2,218,083 1,592,835

Non-current portion 58,978 86,45710 Cash and Cash Equivalents Cash in hand 712 713

Cash at banks 2,066,374 1,203,686

2,067,086 1,204,399

11 Long Term Debt

11.1 Long portion

Citibank N.A.- Mumbai 139,731 233,246

Standard Chartered Bank - Mumbai 180,852 263,781

320,583 497,027

11.2 Current portion Citibank N.A.- Mumbai 232,886 233,246

Standard Chartered Bank - Mumbai 180,852 175,854

413,738 409,100


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30 Jun 2014 31 Dec 2013

Taka'000 Taka'000

12 Deferred Tax Liabilities

The tax effects of temporary differences that resulted in deferred tax liabilities and assets.

Deferred tax liabilities

Property, plant and equipment 2,425,900 2,432,162 2,425,900 2,432,162

Deferred tax assets

Provision for gratuity 3,340 32,722

Provision for doubtful debts 2,661 2,423

Business loss 849,786 1,172,507

855,787 1,207,652

Net deferred tax liabilities 1,570,113 1,224,510

13 Provisions

Site restoration provisions

Balance at 1 January 23,146 23,125

Current year addition 1,624 4,995

Translation adjustment 676 (4,974)

At June 30/December 31 25,446 23,146

The Company is legally required to restore a quarry site, the estimated costs of site restoration are accrued and

recognized to the cost of sales, on the basis of mines closure plan submitted to Indian Bureau of Mines (IBM).

14 Trade Payables

Payable for expenses 1,448,740 1,369,267

General assistance fee (Note- 14.1) 264,499 288,286

Trademark license fee (Note- 14.2) 264,499 288,285

Advances paid by customers 244,244 321,059

Others 2,938 735

2,224,920 2,267,632

14.1 General assistance fee

The amount is payable to Lafarge S.A. and Cementos Molins for general assistance fee (1 percent of

annual net turnover of the company in accordance with the General Assistance Agreement).

14.2 Trademark license fee

The amount is equally payable to Lafarge S.A. and Cementos Molins for trademark license fee (1 percent

of annual net turnover of the company in accordance with the Trademark License Agreement).

15 Other Payables

Payables to supplier of property, plant & equipment 122,013 95,848

Accrued interest and commitment fees 10,307 8,325 Payable to employees 127,938 240,348

Income tax & VAT deducted at source 91,762 95,543

Interim dividend payable* 580,687 -

932,707 440,064

*The Board of Directors' of the Company at the meeting held on 9 June 2014 has approved an interim

dividend of five percent, in cash, on the paid-up capital of the Company based on the results for the

period from 1 January to 31 May 2014 .


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30 Jun 2014 31 Dec 2013

Taka'000 Taka'000

16 Short Term Debt

Bank overdraft facilities 74,079 73,993

Short term credit facilities 2,721,304 2,687,854

2,795,383 2,761,84717 Current Tax Liabilities

Balance at 1 January 173,282 115,592

Cancellation of provision (23,076) -

Provision for the period/year 17,013 57,690

At June 31/December 31 167,219 173,282


Taka'000 Taka'000

18 Revenue

Sale of gray cement 5,029,162 4,712,681

Sale of cement clinker 597,562 979,294 5,626,724 5,691,975

19 Cost of Sales

Manufacturing variable cost 1,942,652 1,743,569

Manufacturing fixed cost 677,633 580,795

Distribution cost to customers 178,428 132,622

Internal distribution cost 354,307 321,915

Inventory movement 16,089 1,72,612

Depreciation and amortization 293,672 297,898

3,462,781 3,249,411

20 General and Administrative Expenses

Salary, allowances and benefits 94,502 83,386 General assistance fee 53,118 4,590

Trademark license fee 53,117 54,590

Computer expenses 16,812 16,814

Other office expenses 72,757 62,448

Administrative depreciation and amortization 14,156 15,181

Contribution to Workers' Profit Participation and welfare Fund 61,820 87,046

366,282 374,055

21 Sales and Marketing Expenses

Salary, allowances and benefits 29,578 31,436

Advertisement 39,144 37,936

Other office expenses 14,218 11,569

82,940 80,941

22 Finance Costs and Income

Interest on long term debt 31,114 77,158

Interest on short term debt 43,393 94,280

Fees for long term debt - 6,472

Other finance costs 20,047 412

Exchange loss - 250,805

Bank charges and commission 9,855 10,691

Finance costs 104,409 439,818

Interest income on Bank Deposits 28,060 51Exchange gain 29,152 -

Finance income 57,212 51

Net finance (income)/costs 47,197 4,39,767


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Taka'000 Taka'000

23 Income Tax

Current income tax expenses 17,013 29,428

Cancellation of provision (23,076)

Deferred income tax 345,603 636,305339,540 665,733

24 Earnings Per Share

The computation of basic earnings per share for the periods ended 2014 and 2013 are as follows:

NUMERATOR (Thousand Taka)

INCOMEFOR THE PERIOD- ATTRIBUTABLE

TO THE OWNERS OF THE PARENT COMPANY 1,402,274 1,062,021

DENOMINATOR (Thousands of Shares)

WEIGHTED AVERAGE NUMBER

OF SHARES OUTSTANDING 1,161,374 1,161,374

BASIC EARNINGS PER SHARE Taka 1.21 0.91

DILUTED EARNINGS PER SHARE Taka 1.21 0.91

25 Related Party Transactions

Except for the regular transactions, there were no significant related party transactions during the

period.

26 Commitments and Contingencies

There were no significant changes in the commitments and contingencies made by the Company during

the period.



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LAFARGE SURMA CEMENT LIMITEDStatement of Financial Position (Un-audited)

at 30 June 2014

30 Jun 2014 31 Dec 2013

Notes Taka'000 Taka'000

ASSETS

NON-CURRENT ASSETS

Property, plant and equipment 5 11,274,950 11,387,280

Intangible assets 6 13,275 13,738

Investment in subsidiaries 531,880 517,181

Loan to subsidiary company 696,487 824,393

12,516,592 12,742,592

CURRENT ASSETS

Inventories 7 1,579,239 1,556,950

Trade receivables 8 779,715 799,536

Other receivables 9 2,049,851 1,572,195Cash and cash equivalents 10 2,021,634 1,162,174

6,430,439 5,090,855

TOTAL ASSETS 18,947,031 17,833,447

EQUITY & LIABILITIES

Share capital 11,613,735 11,613,735

Retained earnings 1,103,465 849,109

Other component of equity 11,987 (2,712)

EQUITY 12,729,187 12,460,132

NON-CURRENT LIABILITIES

Deferred tax liabilities 11 1,570,113 1,224,510

Employee benefits 21,269 1,28,358

1,591,382 1,352,868

CURRENT LIABILITIES

Trade payables 12 2,093,577 2,020,193

Other payables 13 917,469 403,143

Short-term debt 14 1,448,197 1,423,829

Current tax liabilities 15 167,219 173,282

4,626,462 4,020,447

TOTAL EQUITY AND LIABILITIES 18,947,031 17,833,447




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LAFARGE SURMA CEMENT LIMITEDIncome Statement (Un-audited)



Note Taka '000 Taka '000 Taka '000 Taka '000

REVENUE 16 5,626,724 5,691,975 2,954,962 2,746,008

Cost of sales 17 (4,010,750) (3,727,380) (2,111,041) (1,932,257)

GROSS PROFIT 1,615,974 1,964,595 843,921 813,751

General and administrative expenses 18 (366,282) (374,055) (186,275) (183,143)

Sales and marketing expenses 19 (82,940) (80,941) (42,835) (39,732)

Other operating income 3,795 179,953 435 171,165

OPERATING INCOME 1,170,547 1,689,552 615,246 762,041

Finance cost 20 (35,605) (96,310) (19,223) (36,492)

Finance income 20 39,641 60,625 25,196 12,308

INCOME BEFORE TAX 1,174,583 1,653,867 621,219 737,857

Income tax 21 (339,540) (665,733) (165,801) (299,019)

INCOME FOR THE PERIOD 835,043 988,134 455,418 438,838

Basic earnings per share (Taka) 22 0.72 0.85 0.39 0.38




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LAFARGE SURMA CEMENT LIMITEDStatement of Comprehensive Income (Un-audited)



Taka '000 Taka '000 Taka '000 Taka '000


Items that may be reclassified

subsequently to profit or loss

Cash flow hedge instruments - - - (492)

Exchange differences on

translating foreign operation 14,699 (62,947) (247) (55,372)

OTHER COMPREHENSIVE

INCOME/(LOSS) FOR THE PERIOD 14,699 (62,947) (247) (55,864)

TOTAL COMPREHENSIVE




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LAFARGE SURMA CEMENT LIMITEDStatement of Changes in Equity (Un-audited)


( All figures are in Tk. '000)

Other

Share Retained component Total

capital earnings of equity equity

Balance at 1 January 2013 11,613,735 (1,224,788) 79,271 10,468,218

Total comprehensive income/(loss)

for the period - 988,134 (62,947) 925,187

Balance at 30 June 2013 11,613,735 (236,654) 16,324 11,393,405

Balance at 1 January 2014 11,613,735 849,109 (2,712) 12,460,132

Total comprehensive

income for the period - 835,043 14,699 849,742

Interim dividend - (580,687) - (580,687)

Balance at 30 June 2014 11,613,735 1,103,465 11,987 12,729,187



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LAFARGE SURMA CEMENT LIMITEDStatement of Cash Flows (Un-audited)



Taka'000 Taka'000

Cash Flows From Operating Activities

Cash receipts from customers 5,569,730 5,734,755

Cash paid to suppliers and employees (4,618,083) (3,902,229)

Cash generated in operations 951,647 1,832,526

Income tax paid (192,116) (130,880)

Other receipts 5,501 172,016

Net cash generated by operating activities 765,032 1,873,662

Cash Flows From Investing Activities

Payments for property, plant and equipment (89,460) (103,302)

Payments for intangible assets (2,134) (1)Proceeds from sale of property, plant and equipment 477 4,526

Received against loan to subsidiary company 126,357 126,707

Interest received from subsidiary company 45,229 49,316

Interest income on bank deposits 17,235 -

Net cash generated by investing activities 97,704 77,246

Cash Flows From Financing Activities

Repayment of long term debt - (1,462,161)

Increase (decrease) in short term debt 25,928 (111,050)

Payment of interest (29,204) (122,384)

Net cash used in financing activities (3,276) (1,695,595)

Net increase/(decrease) in cash and cash equivalents 859,460 255,313

Cash and Cash Equivalents at Beginning of the Period 1,162,174 143,503

Cash and Cash Equivalents at End of the Period 2,021,634 398,816



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LAFARGE SURMA CEMENT LIMITEDNotes to the Condensed Financial Statements (Un-audited)


1 Background and Introduction

Formation and legal status Lafarge Surma Cement Limited (LSCL) -(hereinafter referred to as "Lafarge Surma or the Company")

was incorporated on 11 November 1997 as a private limited company in Bangladesh under the CompaniesAct 1994 having its registered office in Dhaka. The Company has subsequently been converted into apublic limited company on 20 January 2003 and went for Initial Public Offering of shares in November2003 which was fully subscribed and issued. The shares have since been listed and are being traded inDhaka and Chittagong Stock Exchanges.

2 Nature of Business

The Company has established the countrys only modern, integrated and state-of-the art cementmanufacturing plant at Chhatak under Sunamganj district. The company extracts and processes the basicraw materials limestone from its own quarry in Meghalaya. A 17 kilometre cross-border belt conveyor links

the quarry with the cement plant for transportation of raw materials. The company is engaged in manufacturing and marketing of cement and clinker in the local market.

3 Basis of Preparation

The interim financial statements have been prepared in accordance with Bangladesh AccountingStandard 34 Interim Financial Reporting.

4 Significant Accounting Policies

The financial statements have been prepared under the historical cost convention , except for the following: i) derivative financial instruments measured at fair value; ii) financial instruments at fair value through profit and loss measured at fair value.

The same accounting policies, presentation and methods of computation have been followed in theseinterim financial statements as were applied in the preparation of the Company's financial statements forthe year ended 31 December 2013.

30 Jun 2014 31 Dec 2013

Taka'000 Taka'000

5 Property, Plant and Equipment

COST

At January 1 14,910,193 14,837,085

Additions 139,960 111,774

Disposals (14,415) (38,666)

At June 30/December 31 15,035,738 14,910,193

DEPRECIATION

At January 3,522,913 3,047,018

Disposals (12,236) (25,890)

Change for the period 250,111 501,785

At June 30/December 31 3,760,788 3,522,913

CARRYING AMOUNT 11,274,950 11,387,280

30 Jun 2014 31 Dec 2013 Taka'000 Taka'000

6 Intangible AssetsCOST

At January 1 69,553 65,849 Additions 2,134 3,736 Disposals (4) (32) At June 30/December 31 71,683 69,553


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30 Jun 2014 31 Dec 2013 Taka'000 Taka'000

AMORTIZATION At January 55,815 51,649 Disposals (4) -

Change for the period 2,597 4,166 At June 30/December 31 58,408 55,815

CARRYING AMOUNT 13,275 13,738

7 Inventories

Raw materials 539,565 490,994 Spare parts 769,435 781,158 Packing materials 15,769 10,782 Other materials 62,467 1,14,431 Finished goods and work in process 192,003 159,585 1,579,239 1,556,950

8 Trade ReceivablesTrade receivables 789,392 808,346

Valuation allowance (9,677) (8,810)

779,715 799,5369 Other Receivables

Contractors, consultants, suppliers and others 253,736 114,555 Employees 71,979 41,743 Prepaid expenses 189,038 104,877 VAT current account 180,208 117,171 Income tax-deducted at source 1,139,896 947,780 Other receivables 21,072 26,754 Accrued interest 193,922 219,315

2,049,851 1,572,19510 Cash and Cash Equivalents

Cash in hand 648 610 Cash at banks 2,020,986 1,161,564

2,021,634 1,162,17411 Deferred Tax Liabilities

The tax effects of temporary differences that resulted in deferred tax liabilities and assets. Deferred tax liabilities Property, plant and equipment 2,425,900 2,432,162 2,425,900 2,432,162 Deferred tax assets Provision for gratuity 3,340 32,722 Provision for doubtful debts 2,661 2,423 Business loss 849,786 1,172,507 855,787 1,207,652

Net deferred tax liabilities 1,570,113 1,224,510

12 Trade Payables

Payable for expenses 1,317,397 1,121,828 General assistance fee (Note- 12.1) 264,499 288,286

Trademark license fee (Note- 12.2) 264,499 288,285 Advances paid by customers 244,244 321,059 Others 2,938 735

2,093,577 2,020,193


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12.1 General assistance fee The amount is payable to Lafarge S.A. and Cementos Molins for general assistance fee (1 percent of

annual net turnover of the company in accordance with the General Assistance Agreement).

12.2 Trademark license fee The amount is equally payable to Lafarge S.A. and Cementos Molins for trademark license fee (1 percent

of annual net turnover of the company in accordance with the Trademark License Agreement). 30 Jun 2014 31 Dec 2013

Taka'000 Taka'000

13 Other Payables

Payables to supplier of property, plant & equipment 117,725 67,225 Accrued interest and commitment fees 10,307 8,325 Payable to employees 122,643 238,101 Income tax & VAT deducted at source 86,107 89,492 Interim dividend payable* 580,687 -

917,469 403,143

*The Board of Directors' of the Company at the meeting held on 9 June 2014 has approved an interim

dividend of five percent, in cash, on the paid-up capital of the Company based on the results for theperiod from 1 January to 31 May 2014 .

14 Short Term Debt

Used short term credit facilities

Citibank N.A. 745,799 382,554 The Hongkong and Shanghai Banking Corporation Limited 672,788 396,525

Standard Chartered Bank 29,610 644,750

1,448,197 1,423,829

15 Current Tax Liabilities

Balance at 1 January 173,282 115,592 Cancellation of provision (23,076) -

Provision for the period/year 17,013 57,690 At March 31/December 31 167,219 173,282


Taka'000 Taka'000

16 Revenue

Sale of gray cement 5,029,162 4,712,681 Sale of cement clinker 597,562 979,294

5,626,724 5,691,975

17 Cost of Sales Manufacturing variable cost 2,763,160 2,515,394 Manufacturing fixed cost 508,936 415,829 Distribution cost to customers 178,428 132,622 Internal distribution cost 354,307 321,915 Inventory movement (32,354) 1,04,634 Depreciation 238,273 236,986

4,010,750 3,727,380

18 General and Administrative Expenses Salary, allowances and benefits 94,502 83,386

General assistance fee 53,118 54,590 Trademark license fee 53,117 54,590

Computer expenses 16,812 16,814 Other office expenses 72,757 62,448 Administrative depreciation and amortization 14,156 15,181 Contribution to Workers' Profit Participation and welfare Fund 61,820 87,046

366,282 374,055


22/22


Taka'000 Taka'000

19 Sales and Marketing Expenses

Salary, allowances and benefits 29,578 31,436

Advertisement 39,144 37,936

Other office expenses 14,218 11,569 82,940 80,941

20 Finance Costs and Income

Interest on long term debt - 25,732

Interest on short term debt 15,136 53,996

Fees for long term debt - 6,472

Exchange loss - -

Other finance costs 11,685 412

Bank charges and commission 8,784 9,698

Finance costs 35,605 96,310

Interest on loan to subsidiary company 12,707 16,945

Interest income on Bank Deposits 26,144 51

Exchange gain 790 43,629

Finance income 39,641 60,625

Net finance costs (4,036) 35,685

21 Income Tax

Current income tax expenses 17,013 29,428

Cancellation of provision (23,076) -

Deferred income tax 3,45,603 6,36,305

339,540 665,733

22 Earnings Per Share

The computation of basic earnings per share for the periods ended 2014 and 2013 are as follows:

NUMERATOR (Thousand Taka)

INCOME FOR THE PERIOD- ATTRIBUTABLE TO

THE OWNERS OF THE PARENT COMPANY 835,043 988,134

DENOMINATOR (Thousands of Shares)

WEIGHTED AVERAGE NUMBER OF

SHARES OUTSTANDING 1,161,374 1,161,374

BASIC EARNINGS PER SHARE Taka 0.72 0.85

DILUTED EARNINGS PER SHARE Taka 0.72 0.85

23 Related Party Transactions

Except for the regular transactions, there were no significant related party transactions during the

period.

24 Commitments and Contingencies

There were no significant changes in the commitments and contingencies made by the Company during

the period.


half yearly report 2014

Documents